Sooner or later, in the life of every person, the realization that continuing to work for someone does not make sense, and on the contrary, it makes sense to go about your own business. A business that will generate revenue, and which will be interesting to do. You can buy a finished business, come up with something new, and even open a business without start-up capital. Perhaps the last option is most relevant for our compatriot, so we’ll talk about him in more detail.
The eternal question - where to start? And you need to start, first of all, with the fact that you determine for yourself what service or product you are going to release, who needs it, i.e. determine the target audience, and how much you can pay for this product.
The next step is market analysis. Find out who, where and at what price sells a similar product or service, and, based on the cost of your products, determine whether it is worth doing this business in this competitive environment. If we talk about cost more specifically, it will include: rental of premises, payment of utilities, wages of prospective employees, all necessary taxes.
And then comes the moment when you need to look for sources of financing that allow you to start a business without start-up capital.
Sources of financing
One of these sources may be government programs to support entrepreneurs. Suppose, as we determined at the beginning, there is no saving for starting a business, and, therefore, the question is: how to start a business without start-up capital. In this case, you can turn to the state through the appropriate funds to support entrepreneurial activity, however, you need to consider that in your project there are several points in which the state itself is already interested. Namely: whether you will create additional jobs and how much, how much the budget will be replenished with taxes from your activities, what social burden you, as an entrepreneur, are ready to take on and what benefit will be for a particular region.
Another affordable financing option that will help you start a business without start-up capital is bank lending. Here, as in the case of state programs, will have to prove. To prove that the proposed business project is potentially successful, and the planned income will allow you to pay expenses, and return the loan to the bank along with interest. In addition, the bank needs guarantees in case something happens to the borrower, so be prepared for additional costs in the form of registration of personal life insurance.
The next way to start a business without start-up capital is to attract co-investors. Here, as elsewhere, there are both positive and negative points. Naturally, it is possible to get money from acquaintances who have “entered the stake” on much more favorable terms than in a bank, but when people are tied up with money, even the strongest friendly union can collapse. One must be prepared for this, because a similar situation may arise at the most inopportune moment for this.
The conclusion from all of the above: to organize a business without start-up capital is very difficult, but possible. The best option is to find a business based solely on an idea or knowledge in a particular field, i.e. not requiring significant upfront investments.